I’m not sure why we spend so much time trying to marginally improve the S&OP process each month. We always end up changing our plan later.
When reality doesn’t follow the forecasts and plans you’ve carefully crafted, when and how do teams respond?
Too often issues are overlooked, falling into the gap between planning and execution until it’s too late, and you’re left manually firefighting once again. Problems are not met with timely solutions due to:
Gaps between processes: Inventory risks and opportunities are missed or not identified until the last minute, when they’re expensive and hard to address
- Ad hoc analysis, in manual spreadsheets
- Decisions with incomplete information
Gaps between teams: Planners, customer supply chain, inventory managers and others each have their own view on the most pressing issues
- No shared understanding of problems
- Hours of calls, meetings and emails to create alignment
Gaps between systems: Data to understand the upstream and downstream impacts of changes sit in different systems that can’t talk to each other
- Forecasts, orders, POS, shipments and inventory spread across tools
- Data comes in different formats, requires translation
On demand webinar
A sweet deal: How global confectioner Ferrero takes a bite out of supply chain issues
Featuring Glenn Lawse, VP Supply Chain USA at Ferrero
Watch now »
Valvoline’s supply chain strategy is to become more and more forward-looking, proactively aligning inventory to future demand, instead of simply reactive to customer orders... Too much of the current reporting washes out the details and hides problems.
The gap? There are many, but the largest is the need to move from inside-out to outside-in processes. We must get past the functional data/process silos to serve the market.
Beware the gap
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